3 exciting small cap ASX shares to watch closely

Check out these small cap ASX shares…

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The small end of the Australian share market is home to a number of companies with the potential to grow strongly in the future.

Three small caps that investors may want to get better acquainted with are listed below. Here's why they should be on your watchlist:

Alcidion Group Ltd (ASX: ALC)

The first small cap ASX share to watch is this growing informatics solutions company. Alcidion notes that it helps healthcare organisations harness the power of technology to create a clinically relevant environment with digitally enabled care. The company's tailored platforms are able to leverage clinical decision support, artificial intelligence and real-time visualisation to provide smart health informatics for safer delivery of care. Demand has been growing strongly for its technology, leading to the several large contracts with major healthcare institutions.

Booktopia Group Ltd (ASX: BKG)

The second small cap ASX share to watch is Booktopia. It is an online book retailer which has been growing at a rapid rate in recent years. For example, the company notes that it sold one item every ~4.7 seconds and shipped ~6.5 million items in the 12 months to 30 June 2020. This averages 25,000 items per business day. Pleasingly, since then, its growth has gone up another level. This has been driven by the ongoing shift to online shopping, which has accelerated during the pandemic. Also supporting its growth has been the construction of its new distribution centre. This is allowing it to capitalise fully on the shift and ship more items than ever.

Pointerra Ltd (ASX: 3DP)

A final small cap to watch is this 3D geospatial data technology company. Pointerra highlights that its technology has solved an entrenched problem in the digital asset management sector. It allows very large 3D datasets to be used without the need for high performance computing. It achieves this by allowing 3D data to be processed and stored in the cloud for instant, on demand user access. Management believes that it has an enormous $500 billion market opportunity globally.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd and Pointerra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Alcidion Group Ltd and Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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